A north-west based claimant firm has entered administration after its primary litigation funder declined to continue providing capital for ongoing cases.
AWH Solicitors, which operated from offices in Manchester and Blackburn, filed a notice of intention to appoint administrators earlier this week. The application was submitted under the name M8 Trading Ltd, previously known as AWH Legal Ltd.
It is understood that prior to the administration process, the firm arranged for its live matters to be transferred to other practices, with a number of fee earners moving alongside those case files to ensure continuity for clients.
Director Abdul Hussain indicated that the closure was not prompted by concerns about case quality or professional conduct, but rather by wider funding pressures affecting the claims market. According to statements made publicly, litigation funders have significantly reduced exposure in the sector, leaving some firms unable to secure replacement capital at short notice.
Financial filings show that the firm’s turnover reduced from approximately £5.3 million to £3.2 million in the year ending 31 December 2023. Pre-tax losses of around £29,000 were recorded during the same period, and staff numbers decreased from 92 to 60. A registered loan facility had been secured with litigation funder I Quote Limited in mid-2023, alongside existing bank borrowing reported at over £2 million.
The firm specialised primarily in clinical negligence and noise-induced hearing loss claims, as well as personal injury, industrial disease, and housing disrepair work.
This development reflects ongoing pressures within the claimant litigation funding landscape, where capital availability has become increasingly selective. Firms operating on volume-based or funded case models may face heightened scrutiny from funders amid tightening market conditions.
Importantly, it has been confirmed that the administration relates solely to this entity and does not extend to other businesses connected to its director.
